Neal Wolkoff, chief executive of ELX Futures, has written to the Commodity Futures Trading Commission asking it to force CME Group to accept US Treasury futures trades opened at ELX.
The letter is the latest salvo in a battle
between CME — which has long enjoyed a virtual
monopoly on Treasury futures — and ELX, a start-up
exchange that wants to break into the market.
ELX has won CFTC backing for a practice
called exchange of futures for futures (EFF), which means
market participants could move positions from ELX to CME. This
should make them more willing to trade at ELX, secure in the
knowledge that they could fall back on the CME’s
liquidity if necessary.
Wolkoff said he felt compelled to write to
the CFTC after what he described as "misleading statements"
from CME Group, which he said was trying to prevent the market
through "threats and intimidation, from using an approved
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